NRB to Absorb Rs. 20 Billion from Banks Amid Excess Liquidity

Nepal Rastra Bank (NRB) is set to collect Rs. 20 billion in deposits from banks and financial institutions through a bidding process today as part of its liquidity management operations. According to a notice issued by the central bank, the deposits will be collected for a period of 32 days. The bidding will be conducted through NRB’s Online Bidding System at 3 PM on September 24, 2026 (Ashwin 8, 2083). The interest rate will be determined through the bidding process. Participating institutions must submit a minimum bid of Rs. 10 crore, while bids can be placed in multiples of Rs. 5 crore, up to the total amount announced by NRB. Banks and financial institutions may submit multiple bids within the overall issue limit. Only NRB-licensed Class ‘A’, ‘B’, and ‘C’ banks and financial institutions are eligible to participate in the bidding. The deposits collected through the process, along with the applicable interest, will be returned to the participating institutions on Kartik 9, 2083 (October 26, 2026). The move comes as the central bank continues to use liquidity management tools amid elevated liquidity in the banking and financial system.